The Metropolitan Remand Centre is facing its second day of rioting following news of a statewide cigarette ban in prisons.
Nine fire trucks are at the scene, along with a number of police officers.
Corrections Victoria told The Age it was responding to a minor fire and there was no risk to staff or prisoner safety.
There are reports a siren has been sounding from within the jail since 10.40am, however, it is still unknown what is happening inside.
This morning five inmates were injured when police intervened in a 15-hour long riot.
Several hundred prisoners were involved in the riots at the facility, where police had to control crowds using tear gas. Read more on that here.
A full review into the riots will be held by Corrections Victoria, while Victoria Police is investigating.
The Age has more.
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